How to get a TAN number for a company

TAN stands for Tax Deduction Account Number, which comes into the scene when someone decides to start a business and hires employees.

TAN is a 10 digit alpha numeric number to be acquired by all the persons responsible for deducting or collecting taxes. Only a person having a PAN can apply for TAN.

Why is getting a TAN mandatory?

Under section 203A of the income Tax act, 1961 it is mandatory for all who deduct or collect tax at source to apply for allotment of TAN. This section also makes it obligatory that TAN should be mentioned in all TDS/TCS returns.

Any failure to apply for TAN or abide by the provisions of section 203A will lead to payment of penalty of Rs. 10,000.

How to apply for TAN?

With the boom in technology, everything can be one in minutes and at the ease of your fingertips. There is no more need to stand in long queues for getting a tax deduction account number. All you need to do is to go to the NSDL website and fill the form.

1. At the NSDL website fill form no. 49B
2. After filling the form, a payment has to be made that is Rs. 62 inclusive of all the processing charges which can be made through net banking or by a cheque or demand draft or even in cash.
3. After the transaction is complete, a 14 digit acknowledgement number will be displayed.
4. Those who chose online mode of payment will receive TAN online through an e-mail.
5. TAN allotment letter will be dispatched only when the receipt of signed acknowledgement will be received by them.

Documents required for TAN registration?

No specific documents are required for allotment of TAN. Just the acknowledgement displayed on the screen has to be printed and duly signed to receive the tax account deduction number.